Canadian oil and gas producer Pacific Rubiales Energy Corporation said its Rubiales oil pipeline in Colombia is 99.75% complete and line filling will begin in the first half of August.

The pipeline, which has been under construction since late 2008, has an initial capacity of 170,000 barrels of blended Rubiales heavy oil per day and can be upgraded to 260,000 bpd by adding booster pump stations, Reuters reported the company as saying.

Pacific Rubiales said the pipeline, which links the Rubiales field with the Monterrey station, will be operated by Oleoducto de los Llanos Orientales, a joint venture formed by the company and Ecopetrol, the Colombian national oil company

The project will allow both companies to "substantially reduce the transportation costs for Rubiales crude to the export port of Covenas," Pacific Rubiales said in a statement.

Pacific Rubiales shares closed at C$10.94 yesterday on the Toronto Stock Exchange.